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King Solomon, Donald Trump, Fair Trade Post Four (Repost)

In my previous post I stated I would explore how Congress was sold on the benefits of free trade. I believe influential economists presented their idealistic , but now proven by reality as failed economic theories.

King Solomon

Falsifieed scales are loathed by Yahweh, but a weight which is standard meets his approval. (Proverb 11-1)

The antithesis is between falsified balances and an accurate weight – accurate in the sense that it actually weighs what it ought to weigh without the least deficiency. Both prophecy and law were concerned with honesty and ‘righteousness’ in the particular area of commercial practice. (Proverbs Mc Kane)

Free Trade Economic Theories

If you want to spend a lot of time reading a host of economic theories, may I caution you by giving you this King Solomon advice.

Why I say that is because of these two basic failed economic theories.

Every US dollar that is paid to purchase an import, will someday be returned to the US in the form of a return purchase. (Instead of China buying US products, they buy US Debt, are paid tax free interest. If a US citizen buys US Debt, they must pay tax on the interest earned.)

Business will police itself. There is no need for government regulations. (Anyone remember 2009?)

However, the economists who said this about free trade were right in this first part of their theory.

Right

” Free trade will result in winners and losers,

Wrong

“in time free trade will benefit everyone.”

Reality of Losers

US dollars are being manipulated by trade partners (horse traders) to boost their exports. Donald Trump is telling you the truth about unbalanced scales. I recommend you read this brief article for an overview. HERE

Just a Few Examples of The Losers Scorecards

1.US Trade Deficit = Minus (-) One half trillion dollars a year is not being circulated in the US..

2.The setback of wages for middle class worker back to 1970.

3.The highest insurance costs for health insurance and the highest amount of deductibles for medical care formerly provided by employers of US workers.

4.The largest number of Americans ever receiving food stamps, rent subsidies, emergency room medical care. The direct result of Obamacare and decrease in livable wage and full time 40 hour livable wage jobs.

5.The highest number of US workers no longer paying income taxes because they do not make enough money, are unemployed, are collecting disability payments from Social Security, etc. etc.

In My Next Post

I will explore what happened to explain why many American Corporations decided to outsource their products to foreign suppliers because of inept free trade agreements negotiated and approved by Congress.

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Published by scatterwisdom

Author Bio
After retiring from Business and having more time to read and listen to the news in depth. I began writing Letters to the Editor to express my opinions and over 30 have been published in the Chicago Tribune. I often wondered what King Solomon's opinion would be about all the folly we read and hear about enacted all over the world today. and decided to write a contemporary novel to promote his philosophy to think wisely before making a foolish decision. I pray that readers of my novel will receive a numinous touch to help them make wise choices to benefit themselves, their family, friends, and communities.
Rudy U Martinka attended Northwestern and Elmhurst Colleges. Born 1940, currently residing in Elmhurst, Illinois, he participated in civic associations of Boy Scouts, Elmhurst Safety Council, and Elmhurst Auxiliary Police. Married, with three children and eight grandchildren.
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What the Chinese are doing is wrong and a problem, but our root problem is the high cost of doing business in the United States. Our government is too expensive, to many unneeded regulations and high taxes. The China market might be big, but our businesses would not relocate if we got rid of the stupid regulations and high taxes.

Currency manipulation is a neat trick, but neat tricks that sort require inflating one’s own currency. That’s sort of like shooting yourself in the foot. It has gotten so crazy that people in Europe now pay the banks to hold their money. That means the distortions hurt Chinese people more than it helps them.

Big Government costs do add to the cost of living in the USA. A large part of government expenses is being used to pay benefits to supplement people who do not make a livable wage or do not work anymore because they are retired and living longer.

That subject is different than trade and needs to be resolved, I agree.

The subject I am addressing is fair trade. A US worker cannot compete with workers who are paid wages that are less than two thirds of the cost of living in the USA. While some US products can be produced to compete with the use of high production machinery , not all can.

So either the US worker living costs and standards must be reduced, or trade is balanced.or visa versa. Until that happens, there will always be unfavorable trade balances, deeper national debt, in the USA.

If we do not find a means to balance trade, the US will continue on a downward trend in standard of living.as the charts all indicate is happening. Less livable wage jobs means less taxes means deeper national debt etc etc

“Livable wage” is one of those news media terms we think we understand, but don’t. If someone wants a “livable wage” (whatever that might be), then they have to provide a skill worthy of a “livable wage.” That is not a problem our government can solve, and we need to stop believing politicians who make such promises. Politicians can screw with the law of supply and demand, but they cannot truly change it.

What our government can do is provide a secure place where people can conduct economic activity. That includes securing our borders and protecting our domestic corporations from Chinese coercion. It also includes laws and regulations that allow the development of the transportation systems and other infrastructure necessary to support a modern economy. What it does not include is Socialism, but that is where we are headed.

Government, like anything else reaches a point of diminishing returns, and we passed that point a long time ago.

Minimum wage jobs used to be stepping stones for high school kids to obtain work experience and motivate them to want to study harder to obtain a skill to be hired in a higher paid job in industry.

Today because there is no opportunity for all the jobs associated with industry, whether it be direct labor as a machine operator, or indirect labor such as an accountant have been outsourced to other nations..

The result is minimum wage jobs are the only opportunity to obtain employment. If you calculate the wages paid to the minimum wage scale, a worker would, and many are,working two minimum wage jobs, mostly part time so employer do not have to pay benefits to total a livable wage

I would be happy if our government did what you stated in the very least. However, not only has Congress failed on the points you mentioned, they have failed to represent us in trade as well as borders, health, etc.

We are in agreement on most things, I have serious doubts about Trump.

It seems to me you want government to solve problems. I just wish government would stop trying to solve problems it has no charter to solve.

You mentioned the term minimum wage several times, for example. What good is it. The minimum wage just keeps people from working who are not very productive, like school kids.

Most people really don’t understand the purpose of math. It is a modeling tool. We use math to describe cause and effect relationships. That includes lots of economic theories. What does the minimum wage do? It just keeps people whose labor output doesn’t just the minimum wage from working. The math says it makes no sense to pay someone more than their labor is worth, and no politician can change that.

Trump is both popular and unpopular. He has the highest negatives of any candidate. Why? He is sensational, but some don’t think him trustworthy.

Trump has said some things that people want to hear, but he has contributed to Democrats and held quite Liberal positions. So I don’t have much confidence he will live up to expectations.

When I see Trump running as a Republican, I just scratch my head and wonder why. I don’t vote based upon just one issue, and on too many issues Trump is closer to Bernie Sanders than anyone else.

They say Trump has gone bankrupt four times. That means he borrowed money, and he did not pay it back — four times. When I was in the military, my superiors frowned on that sort of thing.

Would Trump be a better choice than Ted Cruz? Don’t think so. So I wish you would redirect some of that energy.

If the US does not solve the balanced trade issue soon, the US dollar will be worthless. That is another form of bankruptcy..

I intend to comment on Cruz plan to bring jobs back to the US. Frankly, I have my doubts though because US workers cannot compete with low wages because of the higher cost of living in the US.

Math numbers are meaningless when the numbers are manipulated.

I am concerned about Trump’s proposed method and that is why I am expending my time and energy in hopes that if he is elected, I will at least have tried to persuade him to what I consider a more moderate method than tariffs, same as Warren Buffet presented already tried an was shot down by a comatose Congress.

You keep commingling US national debt and trade imbalances between companies and individuals in different countries. Why?

You recognize that we could have companies exporting a trillion dollars a year in net trade surpluses, and still could have (and would have) a government borrowing money to feed its own voracious appetite, right?

China confuses the issue, somewhat, as many Chinese companies are little faces taped upon facets of the Chinese government. But this is much less true in other countries, and certainly much less true in the US.

Also, you were going to convince us here about how Congress was “sold” to do this — but I am not seeing it.